Fraud costs insurers '£2.3m a day'

Insurers say they will step up their fight against fraud after figures reveal bogus claims are costing them around £2.3 million every day.

According to the Association of British Insurers (ABI), around 335 fradulent claims - many of them relating to home orcar insurance - came to light every day on average.

It said firms detected 170 dishonest claims a day on home insurance, with policyholders typically attempting to deceive by claiming accidental damage to furniture or carpets that are ruined intentionally.

Fraudulent claims on motor insurance averaged 108 a day and cost around £1.1 million, the ABI said.

The industry is trying to put tough measures in place to thwart cheats so that honest customers are not burdened with the extra costs, it added.

Nick Starling, the ABI's director of general insurance and health, said: "The majority of customers are honest and rightly object to subsidising the cheats. Insurance fraud adds an extra £44 to the average UK household's annual insurance bill.

The ABI said in the five years since it has been collecting data on insurance fraud, one of the most bizarre bogus claims that came to light was that of a man who claimed he had been left unable to walk after an accident.

But his fraud was uncovered when his photograph appeared in a newspaper after he was named leading goal scorer for his local football team.

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